But technological innovation and continuous dialogue between workers, employers and government have been key factors as well. In other words – poverty was eradicated by a business sector that took social considerations and had a perspective broader and longer than immediate, short-term profits.
Today, this approach is commonly known as Corporate Social Responsibility (CSR). At a half-day seminar arranged by Innovation Norway, in co-operation with the Norwegian embassy and the Nordic Chamber, more than 50 people turned up to hear a number of speakers present their experiences with CSR, and why they believe CSR is both a source of business opportunities and competitive advantage.
The seminar was opened by Norway’s ambassador Jens Eikaas, who presented a white paper on CSR in the global economy, which the Norwegian government recently published. The main point in the paper is that Norwegian companies that are operating abroad must realise that they have a responsibility that extends beyond simply complying with local laws. In particular, they should pay attention to human rights, ensure decent working conditions, take environmental concerns into consideration, combat corruption and maximise transparency.
“The Norwegian government should not dictate to private businesses [about how to operate], but we have high standards in the public sector, and this should also apply for the private sector,” outlined Ambassador Eikaas. “The current financial crisis shows that business activities that are solely motivated by the desire for short-term profit can have serious global consequences.”
The next three speakers presented CSR from a business perspective. Based on her personal experiences, Trude Andersen of Innovation Norway said that CSR-focusing businesses have an easier job attracting young talents as the new generation is taking this issue quite seriously. Tomáš Urban, director of Det norske Veritas in the Czech Republic, explained how the Temelín nuclear power plant, whose operations have caused widespread discussion, has won local villagers’ confidence by patiently and consistently informing them about everything that goes on at the plant. Finally, Skanska’s vice president Leoš Vrzalík outlined how the company, responsible for covering the Bohemian landscape with miles of motorways, has adopted a plan to become a champion of environmentally-friendly project development and construction.
“Of course this is also good PR for the company, but we see this as a business opportunity. Customers do care about green solutions as long as they are economically attractive,” said Mr. Vrzalík.
Overall, how aware are Czech firms of CSR? Det norske Veritas’ Mr. Urban recalls how he recently visited the local office of a large bank. Asking to see the bank’s CSR officer, he was taken to a lady responsible for handing out gifts to charities. Based on this and other experiences, Mr. Urban believes that Czech businesses generally need more information about this subject. However, in the efforts to convey the CSR message to the recipient he warns about potential pitfalls stemming from communist propaganda, memories of which are still fresh in Czech minds.
“The CSR concept is laudable, but Czechs tend to react when somebody presents himself as better than others,” said Mr. Urban, explaining that a ham-fisted campaign might backfire. “Moreover, they are allergic to anything that smacks of a state decree, so this must not be seen as a kind of diktat.”
Photogallery: HERE